N.Y. Banking Law § 5008: Fractions of a share or scrip authorized

§ 5008. Fractions of a share or scrip authorized. 1. a. A corporation

may, but shall not be obliged to, issue fractions of a share either

represented by a certificate or uncertificated, which may entitle the

holder, in proportion to his or her fractional holdings, to exercise

voting rights, receive dividends and participate in liquidating

distributions.

b. As an alternative, a corporation may pay in cash the fair value of

fractions of a share as of the time when those entitled to receive such

fractions are determined.

2. As an alternative, a corporation may issue scrip in registered or

bearer form over the manual or facsimile signature of an officer of the

corporation or of its agent, exchangeable as therein provided for full

shares, but such scrip shall not entitle the holder to any rights of a

stockholder except as therein provided. Such scrip may be issued subject

to the condition that it shall become void if not exchanged for

certificates representing full shares or uncertificated full shares

before a specified date, or subject to the condition that the shares for

which such scrip is exchangeable may be sold by the corporation and the

proceeds thereof distributed to the holders of such scrip, or subject to

any other conditions which the board may determine.

3. Subject to subdivision six of section one hundred three and

subdivision three of section five hundred nine of this chapter, a

corporation may provide reasonable opportunity for persons entitled to

fractions of a share or scrip to sell such fractions of a share or scrip

or to purchase such additional fractions of a share or scrip as may be

needed to acquire a full share.